In line with seasonal trend, container volumes bounced back in March, increasing 18% MoM as against a 9% drop in the preceding month. On a YoY basis, container volumes grew 5.6% the sharpest in FY14 driven by a 5.6% growth at JNPT and 1.6% YoY at Chennai. Overall volume growth remained muted in FY14, down 3, hurt by a weak macro, according to Religare Institutional Research.
By tonnage, growth in container volumes was lower at 0.2% across major ports. While JNPT reported 3% growth, Chennai tonnage volumes grew 2.4% YoY.
"Aggregate cargo volumes jumped 8% YoY in March as against a 1% drop in February. Commodity-wise, growth was seen across most segments, with fertilizer/coal/other cargo leading the pack at 65%/25%/15%, while POL/container/iron ore remaining laggards at 3.7%/0.2%/-22%. For FY14, overall volumes grew by a meagre 1.8% YoY (FY13: -2.6%) as growth was marred by weak iron ore and container volumes," it said.
Port-wise, only Kandla and Chennai saw a YoY decline in aggregate cargo volumes during March. Overall, FY14 volumes dropped YoY for Vizag (-0.9%), Chennai (-4.3%), Mormugao (-34%), JNPT (-3.3%) and Kandla (-7.1%). While volumes have rebounded YoY/MoM in March, overall growth for the year has remained subdued.
"In our view, the low base over past 2-3 years accompanied by an improvement in macro sentiments would aid growth in FY15. We maintain our positive bias on the sector and expect a gradual recovery led by a revival in container volumes. We have a 'Buy' on GDPL and a 'Hold' on CCRI," Religare added.
